28 Oct 2013
Flash: EUR/USD, weekly momentum could allow for 1.45 - ANZ
FXstreet.com (Barcelona) - The sustained rally in EUR/USD looks set to test declining resistance and a set of measured targets in the 1.3950-1.4050 area ahead of 1.45, according to Tim Riddell, Head of Global Markets Research at ANZ.
Key Quotes
"As noted earlier this month, weekly momentum continues to be supportive as it pushes solidly higher. This materially alters the previously perceived profile and could allow for a broader measured move and retracement towards 1.4500."
"However, this more pronounced rally would still be viewed in the context of a longer term protracted consolidation pattern (with an effective 1.25-1.45 range). Although the more positive profile is gaining force, any sign of faltering would still need to be closely monitored with a slip below 1.3570 needed to undermine the current positive tone for EUR."
"Momentum indicators may be at disconcerting levels, but are not rolling over (to provide a negative warning) as gains continue to hold above February’s 1.3710 high. Concern should be pushed aside and the rally could push through an interim retracement of 1.3835 to a series of measured moves in the 1.3950-1.4050 area."
"This more positive profile should still be seen in the context of defining the upper bounds of a much broader (consolidation) range. Any signs of faltering should be closely monitored in case of an unwinding of the series of rebounds off 1.3100. Ideally 1.3650-90 should provide support and a fall below 1.3565 would be needed to suggest a period of larger retracements."
Key Quotes
"As noted earlier this month, weekly momentum continues to be supportive as it pushes solidly higher. This materially alters the previously perceived profile and could allow for a broader measured move and retracement towards 1.4500."
"However, this more pronounced rally would still be viewed in the context of a longer term protracted consolidation pattern (with an effective 1.25-1.45 range). Although the more positive profile is gaining force, any sign of faltering would still need to be closely monitored with a slip below 1.3570 needed to undermine the current positive tone for EUR."
"Momentum indicators may be at disconcerting levels, but are not rolling over (to provide a negative warning) as gains continue to hold above February’s 1.3710 high. Concern should be pushed aside and the rally could push through an interim retracement of 1.3835 to a series of measured moves in the 1.3950-1.4050 area."
"This more positive profile should still be seen in the context of defining the upper bounds of a much broader (consolidation) range. Any signs of faltering should be closely monitored in case of an unwinding of the series of rebounds off 1.3100. Ideally 1.3650-90 should provide support and a fall below 1.3565 would be needed to suggest a period of larger retracements."